At the beginning of the summer, Humphrey Nelson was looking for a way to earn money to pay for his college tuition in the fall. He decided to start a lawn service business in his neighborhood. To get the business started, Humphrey used $$8,800$ from his savings account to open a checking account for his new business, Elegant Lawn Care. He purchased two used power mowers and various lawn care tools for $$2,000,$ and paid $$3,600$ for a used truck to transport the mowers.

Several of his neighbors hired him to cut their grass on a weekly basis. He sent these customers monthly bills. By the end of the summer, they had paid him $$7,600$ in cash and owed him another $$3,800.$ Humphrey also cut grass on an as$-$needed basis for other neighbors, who paid him $$6,800.$

During the summer, Humphrey spent $$2,200$ for gasoline for the truck and mowers. He paid $$5,400$ to a friend who helped him on several occasions. An advertisement in the local paper cost $$2,200.$ Now, at the end of the summer, Humphrey is concerned because he has only $$7,800$ left in his checking account. He says, $$I worked hard all summer and have only $$7,800$ to show for it$.$ It would have been better to leave the money in the bank.$$

Required:

Prepare an income statement, a statement of owner$$s equity $($for the three month period ended August $31,20$X$1),$ and a balance sheet $($dated August $31,20$X$1)$ for Elegant Lawn Care.